Strong demand drives Evonik on in 2018

Essen, Germany — Polyurethane catalyst and surfactants company Evonik had sales of EUR 15bn in 2018, up 4.5 % on the previous financial year.

Adjusted EBITDA across the business was up 10.4%, and reached EUR 2.6bn in 2018.

Christian Kullman, Evonik's chairman, said: 'Despite substantial external burdens, we delivered on our forecast for 2018.'

Evonik is optimising its sales and administrative processes to permanently reduce costs by EUR 200m by the end of 2020. Savings of EUR 50m are baked into the 2018 figures, the company said. The remainder will be gained this year, Evonik promised.

Sales in the company's nutrition & care division, which includes polyurethane additives, were EUR 4.6bn in the 2018 financial year. This is up 3% on the EUR 4.5 bn achieved in the previous year. The company said that this was a result of 'rising demand worldwide, which led to higher volumes and selling prices'.

Adjusted EBITDA in the division was up 8.4%, at EUR 810m in 2018. This compares with EUR 747m in 2017.

The company also announced that it will complete the sale of  its methacrylate business to Advent International for EUR 3bn in Q3. This is values it at 8.5x EBITDA. Evonik said it will use the cash it generates from the sale to invest in businesses with strong cash flow and attractive margins. It will also purchase PeroxyChem of the US, and it will build a new polyamide 12 plant.